Yahoo has publicized company projections of $8.8 billion in ad revenue by 2010, reports The Associated Press.

2008 revenue is expected to reach $5.7 billion, then grow by 25 percent in 2009 and 2010. If revenue does hit $8.8 billion in the next two to three years, it would constitute a 70 percent increase over 2007 before advertising commissions are paid.

Investors greeted the projections enthusiastically, sending Yahoo's stock price up $1.81 to $27.66.

The $8.8 billion forecast may be interpreted as a quantitative reason why Yahoo found Microsoft's takeover bid insultingly low.